Moody’s Lifts U.S. Hyperscaler Capex to $1 Trillion by 2027 as Local Pushback Spreads
Updated
Updated · Fortune · May 18
Moody’s Lifts U.S. Hyperscaler Capex to $1 Trillion by 2027 as Local Pushback Spreads
2 articles · Updated · Fortune · May 18
Moody’s now projects the top six U.S. hyperscalers will spend $785 billion in 2026 and nearly $1 trillion in 2027, after stronger-than-expected first-quarter AI and cloud growth.
Google Cloud revenue rose 63%, AWS logged its fastest growth in 15 quarters, and Microsoft’s AI revenue topped $37 billion, while the three biggest hyperscalers added about $700 billion in contracted backlog over two quarters.
That buildout is colliding with communities: at least 48 data-center projects worth $156 billion were blocked or stalled in 2025, 25 were canceled versus six in 2024, and more than 20 more were killed in Q1 2026.
188 opposition groups now operate across 40 states, with moratoriums proposed in more than a dozen states; Maine is weighing a halt on new projects above 20 megawatts through late 2027, and Prince George’s County has already paused development.
Hyperscalers have still issued about $240 billion in debt since September 2025, but Moody’s says semiconductor shortages may be the nearer constraint, with DRAM and NAND prices forecast to jump more than 50% as data centers absorb nearly half of global memory supply.
Is Big Tech’s trillion-dollar AI bet, funded by 'shadow borrowing,' creating the next major financial crisis?
As data centers demand city-level power, are communities facing blackouts to fuel the global AI race?
With local opposition and supply chains breaking, is the AI infrastructure boom hitting a physical wall?
AI Infrastructure Supercycle: Hyperscaler Capex Surges Toward $700 Billion Amid Global Expansion, Local Pushback, and Policy Shifts
Overview
Hyperscaler capital expenditure is surging to historic levels, driven by the explosive demand for artificial intelligence. As AI computing needs rapidly outpace supply, major tech companies see underinvestment as a threat to their market position, prompting a shift from cash flow-funded projects to large-scale debt financing. This multi-year investment boom is fueling record debt issuance and massive infrastructure build-outs, with the five largest hyperscalers raising over $137.5 billion since late 2024. The result is a global race to expand AI capacity, reshape technology markets, and address new challenges in energy, policy, and community impact.